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Firm spins off energy division
Alstom Ltd has spun off the energy division into a joint venture with KoCoS Messtechnik of Germany. The new company, Alstom Energy Measurements & Systems Ltd, was incorporated on February 4, 2000, in Chennai. The company's plant is in Pondicherry, deriving the benefits of backward area schemes. For the last couple of years, Alstom has been scouting for a partner to either hive off its energy business or enter into a strategic alliance. This was in line with the company's restructuring roadmap. Moreover, with the changes at the technology level, state electricity boards were replacing electromechanical meters with electronic ones.Alstom was making electromechanical meters and did not have the the technology for electronic meters. In its report to shareholders, the directors have noted that the market for electronic meters is bound to grow and, anticipating this, the company decided to induct KoCoS Messtechnik as its partner. The German outfit makes various types of measuring, recording, control and testing equipment including single and polyphase static energy meters. According to the report, Alstom Energy Measurements & Systems Ltd is expected to begin commercial production by end August 2000. The first financial year of the new company will be of 14 months, from February 4, 2000 to March 31, 2001 Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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